<PAGE>
As filed with the Securities and Exchange Commission on December 3, 1999
Registration No. 333-87537
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------------
Amendment No. 4
to
FORM F-1
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933
-------------------------
E-Cruiter.com Inc.
(Exact Name of Registrant as Specified in its Charter)
Not Applicable
(Translation of Registrant's Name Into English)
<TABLE>
<CAPTION>
<S> <C>
Canada Not Applicable
(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
1510-360 Albert Street CT Corporation
Ottawa, Ontario 111 Eighth Avenue
Canada KIR-7X7 New York, NY 10011
(613) 236-2263 (212) 894-8440
(Address and Telephone Number (Name, Address and Telephone Number
of Registrant's Principal Executive Offices) of Agent for Service of Process)
</TABLE>
Copies of communications to:
<TABLE>
<CAPTION>
<S> <C> <C>
Michael A. Gerrior, Esq. Norman Chirite, Esq. Robert J. Mittman, Esq.
Perley-Robertson, Hill & McDougall Weil, Gotshal & Manges LLP Tenzer Greenblatt LLP
90 Sparks Street, 4th Floor 767 Fifth Avenue 405 Lexington Avenue
Ottawa, Ontario KIP1E2 New York, New York 10153-0119 New York, New York 10174
(613) 238-2022 (212) 310-8000 (212) 885-5000
</TABLE>
Approximate date of commencement of proposed sale of the securities to the
public: As soon as practicable after the effective date of this Registration
Statement.
If any of the securities being registered on this form are to be offered
on a delayed or continuous basis pursuant to Rule 415 under the Securities Act
of 1933, please check the following box. / /
If this form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, check the following box and
list the Securities Act registration statement number of the earlier effective
registration statement for the same offering./ /
If this form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. / /------------
If this form is a post-effective amendment filed pursuant to Rule 462(d)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earliest effective registration statement
for the same offering. / /
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. / /
<PAGE>
CALCULATION OF REGISTRATION FEE
<TABLE>
<CAPTION>
=====================================================================================================
Proposed Proposed
Amount To Maximum Maximum Amount of
Title of Each Class of Be Offering Price Aggregate Offering Registration
Securities To Be Registered Registered(1) Per Unit(2) Price(2) Fee(3)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common Shares ............... 2,817,500 US $6.00 US $16,905,000 US $4,699.59
======================================================================================================
</TABLE>
(1) Includes up to 367,500 common shares which the underwriter may purchase to
cover over-allotments.
(2) Estimated solely for the purpose of computing the amount of the
registration fee. (3) US $4,089.29 has been previously paid.
The registrant hereby amends this registration statement on such date or dates
as may be necessary to delay its effective date until the registrant shall file
a further amendment which specifically states that this registration statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the registration statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
================================================================================
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13. Other Expenses of Issuance and Distribution
The following table lists the expenses that are payable by E-Cruiter.com
Inc. in connection with the offering described in the registration statement,
other than underwriting discounts and commissions. All amounts are estimates
except the SEC registration fee, the NASD and the Nasdaq listing fee.
<TABLE>
<S> <C>
SEC fee ................................................. US $4,699.59
NASD filing fee ......................................... 2,191.00
Nasdaq listing fee ...................................... 7,500.00
Blue sky fees and expenses .............................. 50,000.00
Printing and engraving expenses ......................... 125,000.00
Legal fees and expenses ................................. 255,000.00
Accounting fees and expenses ............................ 95,000.00
Transfer Agent fees ..................................... 3,500.00
Underwriter's non-accountable expense allowance ......... 417,269.00
Miscellaneous ........................................... 70,186.41
----------------
TOTAL ................................................ US$1,030,346.00
================
</TABLE>
Item 14. Indemnification of Directors and Officers
Limitation on Liability and Indemnification Matters
Under the Canada Business Corporations Act, except with respect to an
action by us or on behalf of us to procure a judgment in our favor, we have a
right to indemnify any of our officers or directors or any former officers or
directors, who act or have acted at our request as officers or directors
against any costs, charges or expenses for amounts paid by him to settle an
action in respect of any civil, criminal or administrative action or proceeding
to which he is made a party by reason of having been our director if:
(a) he has acted honestly and in good faith with a view toward our best
interests; and
(b) in the case of a criminal or administrative action or proceeding that
is enforced by monetary penalty, he had reasonable grounds for
believing his conduct was lawful.
We make the determination in (a) and (b) above.
Further, we may, with the approval of a court, indemnify a person who is a
director, officer or former director or officer with respect to an action by or
on behalf of us to procure a judgment in our favor to which he is made a party
by reason of having been our officer or director, against all costs, charges
and expenses reasonably incurred by him in connection with that action if:
(a) he has acted honestly and in good faith with a view toward our best
interests; and
(b) in the case of a criminal or administrative action or proceeding that
is enforced by a monetary penalty he had reasonable grounds for
believing his conduct was lawful.
A director, officer or former director or officer of ours is also entitled
to indemnification from us with respect to all costs, charges and expenses
reasonably incurred by him in connection with the defense of any civil,
criminal or administrative action or proceeding to which he is a party by
reason of being or having been a director or officer of ours, if he:
(a) was substantially successful on the merits in his defense of the
action or proceeding;
(b) acted honestly and in good faith with a view toward our best
interests; and
(c) in the case of a criminal or administrative action or proceeding that
was enforced by a monetary penalty, had reasonable grounds for
believing that his conduct was lawful.
II-1
<PAGE>
In addition, our by-laws provide that no director or officer is liable for
the acts of any other director or officer or employee or for any loss or damage
to us unless it is caused by his own willful neglect or default. However, the
limitation against liability does not extend or grant any director or officer
protection against the breach of any law. The by-laws also provide for an
indemnity similar to the provisions contained in the Canada Business
Corporations Act and subject to the same limitations.
Our by-laws provide that, subject to the Canada Business Corporations Act,
we can purchase and maintain indemnity insurance for the benefit of our
directors and officers as may be determined from time to time by our directors.
We maintain a policy of insurance under which our directors and officers are
insured, subject to the limits of the policy, against certain losses arising
from claims made against them as officers and directors and by reason of any
acts or omissions covered under the policy, in their respective capacities as
directors or officers, including liability under the Securities Act of 1933.
Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to our directors, officers and controlling persons in
relation to the above provisions, or permitted in any other circumstance, we
have been advised that in the opinion of the Securities and Exchange
Commission, such indemnification is against public policy as expressed in the
Securities Act, and is, therefore, unenforceable.
Item 15. Recent Sales of Unregistered Securities
Described below are all securities which E-Cruiter.com Inc. has issued
during the prior 3 years in transactions not involving public offerings. All
issuances have been made in reliance on Rule 903 of Regulation S promulgated
under the Securities Act of 1933, in offers or sales to non-U.S. persons which
occurred outside the United States within the meaning of Rule 901 of the
Securities Act. All amounts in this Item 15 are given in Canadian dollars. All
options granted to employees were granted pursuant to our option plans for
services rendered or to be rendered in the ordinary course of the employee's
employment, and we did not receive any cash consideration for the options so
granted. The number of shares subject to options has been adjusted to give
effect to the recapitalization of the various classes of our shares into one
class of common shares and to the 1-for-0.216932 reverse share split of our
common shares.
(a) On August 1, 1996, we issued 6 million Class A Common Shares to John
Gerard Stanton, our president and Chief Executive Officer, and members
of his family, for aggregate consideration of $60,030.
(b) On December 1, 1996, we issued 4 million Class A Common Shares to Les
Kirkland, a former director, and members of his family, for aggregate
consideration of $40,010.
(c) In December 1996, we issued 557,000 Class D Special Shares to 29
individuals for aggregate consideration of $278,500.
(d) On February 28, 1997, we issued 60,000 Class D Special Shares to 6
individuals for aggregate consideration of $30,000.
(e) On March 10, 1997, we issued 944,444 Class D Special Shares to Paul
Ebbs for aggregate consideration of $425,000, and on May 13, 1997, we
issued an additional 555,556 Class D Special Shares to Paul Ebbs for
aggregate consideration of $250,000.
(f) From April 18, 1997 through December 1, 1997, we granted options to
purchase 159,446 shares to 20 employees at an exercise price of $2.30
per share. These options were granted pursuant to our 1997 option plan.
62,910 of these options were subsequently cancelled and 96,536 remain
outstanding as of the date of this registration statement.
(g) On June 16, 1997, we issued 10,000 Class D Special Shares to an
individual for aggregate consideration of $5,000.
(h) On September 19, 1997, we exchanged 1,500,000 Class D Special Shares
held by Paul Ebbs into an equal number of Class A Common Shares, and
issued an additional 3,750,000 Class A Common Shares to him. We received
no additional consideration for the shares exchanged and received
aggregate consideration of $1.5 million for the additional shares
issued.
II-2
<PAGE>
(i) From January 5, 1998 through November 16, 1998, we granted options to
purchase 97,188 shares to 22 employees at an exercise price of $2.30 per
share. These options were granted pursuant to our 1997 option plan,
24,515 of these options were subsequently cancelled and 72,673 remain
outstanding as of the date of this registration statement.
(j) On June 11, 1998, we issued 2 million Class A Common Shares to Paul
Champagne for aggregate consideration of $1 million.
(k) Between January 22, 1999 and May 27, 1999, we issued $2.6 million
principal amount of 12% senior secured convertible promissory notes to
18 investors, including some of our officers and key employees. We
received aggregate consideration of $2.6 million for these notes. We
paid SteppingStone Capital Corporation a success fee for assisting us in
structuring the notes. These notes bear interest at 12% per year and
their principal and interest is convertible to shares of our common
stock at the rate of 2 shares per dollar.
(l) From January 31, 1999 through August 30, 1999, we granted options to
purchase 369,125 shares to 48 employees and 3 directors. 233,093 of
these options were granted at an exercise price of $2.30 per share,
30,370 were granted at an exercise of $8.07 per share and 105,662 were
granted at an exercise price of US $6.00 per share. These options were
granted pursuant to our 1997 option plan. 35,794 of these options were
subsequently cancelled and 333,331 remain outstanding as of the date of
this registration statement.
(m) On June 24, 1999, we granted options to purchase 21,693 shares to the
spouse of one of our directors in consideration of the services rendered
by such director. The exercise price of these options is $2.30 per share
and they are non-plan options.
(n) On September 13, 1999, we issued 30,000 Class D Special Shares to
SteppingStone Capital Corporation in consideration of consulting
services rendered to E-Cruiter.com Inc..
(o) From September 20, 1999 through October 12, 1999, we granted options to
purchase 17,354 shares to 5 employees at an exercise price of US $6.00
per share. These options were granted pursuant to our 1999 option plan.
No brokers or underwriters were included in any of the above issuances,
except in connection with the issuance of our 12% senior secured convertible
promissory notes where we engaged SteppingStone Capital Corporation as our
financial advisor to structure the notes and paid it a success fee upon
completion of the issuance.
The share certificates issued above have the following restrictive legend:
"There are restrictions on the right to transfer the shares represented by this
certificate."
The share certificates for the new class of common shares will not have
any restrictive legends.
Item 16. Exhibits and Financial Statement Schedules
(a) Exhibits
<TABLE>
<S> <C>
1.1 Form of Underwriting Agreement.*
1.2 Form of Underwriter's Warrant Agreement.*
3.1 Articles of Incorporation, as amended.*
3.2 By-laws.
4.1 Specimen common share certificate.*
4.2 Article 3 and Schedule "A" of the Articles of Incorporation, as amended (filed as part of Exhibit 3.1).*
5.1 Opinion of Perley-Robertson, Hill & McDougall as to the legality of the common shares.*
10.1 Registration Rights Agreement among E-Cruiter.com Inc., Paul Champagne, John Gerard Stanton and
Les Kirkland, dated September 21, 1999.*
10.2 Consulting Agreement between Daetus Consulting Inc. and E-Cruiter.com Inc., dated July 22, 1996.*
</TABLE>
II-3
<PAGE>
<TABLE>
<S> <C>
10.3 Stock Option Agreement between Sandy Bryden and E-Cruiter.com Inc., dated June 24, 1999.*
10.4 Lease Agreement between Drake Beam Morin (0ttawa) Inc. and Omers Realty Corporation, dated
November 16, 1993.*
10.5 Head Lease Assignment Agreement between 871484 Ontario Inc. and E-Cruiter.com Inc., dated August
1, 1999.*
10.6 Service Agreement between Positionwatch Limited and E-Cruiter.com Inc., dated February 23, 1999.*
10.7 E-Cruiter.com Inc. 1997 Key Employee Stock Option Plan.*
10.8 E-Cruiter.com Inc. 1999 Employee and Director Stock Option Plan.*
10.9 Sales and Marketing Agreement between WorkLife Solutions, Inc. and E-Cruiter.com Inc., dated
October 13, 1999.*
10.10 Option Agreement between WorkLife Solutions, Inc. and E-Cruiter.com Inc., dated October 13, 1999.*
21.1 Subsidiaries of E-Cruiter.com Inc.*
23.1 Consent of PricewaterhouseCoopers LLP.*
23.2 Consent of Perley-Robertson, Hill & McDougall (contained in the opinion filed as Exhibit 5.1).*
23.3 Consent of Weil, Gotshal & Manges LLP.*
24.1 Power of Attorney (included in signature page).*
</TABLE>
- ------------
* previously filed
II-4
<PAGE>
(b) Financial Statement Schedules
E-Cruiter.com Inc.
Valuation and Qualifying Accounts
<TABLE>
<CAPTION>
Balance at Provision Balance at
Beginning for Doubtful End of
of Period Accounts Deductions Period
$ $ $ $
------------ -------------- ------------ -----------
<S> <C> <C> <C> <C>
For the year ended May 31, 1997 Allowance for
doubtful accounts .......................... -- 10,000 -- 10,000
------ ------ ------- ------
For the year ended May 31, 1998 Allowance for
doubtful accounts .......................... 10,000 450 (450) 10,000
------ ------ ------- ------
For the year ended May 31, 1999 Allowance for
doubtful accounts .......................... 10,000 40,742 (30,742) 20,000
------ ------ ------- ------
</TABLE>
Item 17. Undertakings
1. E-Cruiter.com Inc. hereby undertakes to provide to the underwriter at the
closing specified in the underwriting agreement, certificates in such
denominations and registered in such names as required by the underwriter
to permit prompt delivery to each purchaser.
2. Insofar as indemnification for liabilities arising under the Securities Act
of 1933 (the "Securities Act") may be permitted to directors, officers and
controlling persons of E-Cruiter.com Inc. pursuant to the foregoing
provisions, or otherwise, E-Cruiter.com Inc. has been advised that in the
opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Securities Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such
liabilities (other than the payment by E-Cruiter.com Inc. of expenses
incurred or paid by a director, officer or controlling person of
E-Cruiter.com Inc. in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, E-Cruiter.com Inc. will,
unless in the opinion of its counsel the matter has been settled by
controlling precedent, submit to a court of appropriate jurisdiction the
question of whether such indemnification by it is against public policy as
expressed in the Securities Act and will be governed by the final
adjudication of such issue.
3. E-Cruiter.com Inc. hereby undertakes that, for purposes of determining any
liability under the Securities Act, the information omitted from the form
of prospectus filed as part of this registration statement in reliance upon
Rule 430A and contained in a form of prospectus filed by E-Cruiter.com Inc.
pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall
be deemed to be part of this registration statement as of the time it was
declared effective.
4. E-Cruiter.com Inc. hereby undertakes that, for the purpose of determining
any liability under the Securities Act, each post-effective amendment that
contains a form of prospectus shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of
such securities at that time shall be deemed to be the initial bona fide
offering thereof.
II-5
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form F-1 and has duly caused this Amendment No. 4 to
the registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the city of Ottawa, province of Ontario, Canada,
on the 2nd day of December, 1999.
E-Cruiter.com Inc.
By: /s/ John Gerard Stanton
--------------------------------
John Gerard Stanton
Chief Executive Officer and President
Pursuant to the requirement of the Securities Act of 1933, this Amendment
No. 4 to the registration statement has been signed by the following officers
and directors of the registrant in the indicated capacities and on the dates
indicated.
<TABLE>
<CAPTION>
Signature Title Date
------------------------------- ---------------------------------------- -----------------
<S> <C> <C>
/s/ John Gerard Stanton Chairman of the Board, Chief Executive December 2, 1999
------------------------------ Officer and President
John Gerard Stanton
/s/ Jeffery E. Potts Chief Financial Officer and Principal December 2, 1999
------------------------------ Accounting Officer
Jeffery E. Potts
* Director December 2, 1999
------------------------------
Roderick M. Bryden
* Director December 2, 1999
------------------------------
John McLennan
* Director December 2, 1999
------------------------------
Matthew J. Ebbs
*By /s/ Jeffery E. Potts
-------------------------------
Jeffery E. Potts
Attorney-in-Fact
</TABLE>
II-6
<PAGE>
Authorized Representative in the United States
E-Cruiter.Com USA Inc.
By: /s/ Jeffery E. Potts
----------------------------------
Name: Jeffery E. Potts
Title: Secretary
II-7
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
No. Description
- -------- ------------------------------------------------------------------------------------------
<S> <C>
1.1 Form of Underwriting Agreement.*
1.2 Form of Underwriter's Warrant Agreement.*
3.1 Articles of Incorporation, as amended.*
3.2 By-laws.
4.1 Specimen common share certificate.*
4.2 Article 3 and Schedule "A" of the Articles of Incorporation, as amended (filed as part of
Exhibit 3.1).*
5.1 Opinion of Perley-Robertson, Hill & McDougall as to the legality of the common shares.*
10.1 Registration Rights Agreement among E-Cruiter.com Inc., Paul Champagne, John Gerard
Stanton and Les Kirkland, dated September 21, 1999.*
10.2 Consulting Agreement between Daetus Consulting Inc. and E-Cruiter.com Inc., dated July
22, 1996.*
10.3 Stock Option Agreement between Sandy Bryden and E-Cruiter.com Inc., dated June 24,
1999.*
10.4 Lease Agreement between Drake Beam Morin (Ottawa) Inc. and Omers Realty Corporation,
dated November 16, 1993.*
10.5 Head Lease Assignment Agreement between 871484 Ontario Inc. and E-Cruiter.com Inc.,
dated August 1, 1999.*
10.6 Service Agreement between Positionwatch Limited and E-Cruiter.com Inc., dated February
23, 1999.*
10.7 E-Cruiter.com Inc. 1997 Key Employee Stock Option Plan.*
10.8 E-Cruiter.com Inc. 1999 Employee and Director Stock Option Plan.*
10.9 Sales and Marketing Agreement between WorkLife Solutions, Inc. and E-Cruiter.com Inc.,
dated October 13, 1999.*
10.10 Option Agreement between WorkLife Solutions, Inc. and E-Cruiter.com Inc., dated October
13, 1999.*
21.1 Subsidiaries of E-Cruiter.com Inc.*
23.1 Consent of PricewaterhouseCoopers LLP.*
23.2 Consent of Perley-Robertson, Hill & McDougall (contained in the opinion filed as Exhibit
5.1).*
23.3 Consent of Weil, Gotshal & Manges LLP.*
24.1 Power of Attorney (included in signature page).*
</TABLE>
- ------------
* previously filed
<PAGE>
BY-LAW NO. I
A by-law relating generally to the
transaction of the business and affairs of
CAREERBRIDGE CORPORATION
(herein called the "Corporation")
CONTENTS
One Interpretation
Two Business of the Corporation
Three Directors
Four Committees
Five Officers
Six Protection of Directors, Officers and Others
Seven Shares
Eight Dividends and Rights
Nine Meetings of Shareholders
Ten Divisions and Departments
Eleven Notices
Twelve Effective Date
BE IT ENACTED as a by-law of the Corporation as follows:
Section One
INTERPRETATION
1.01 Definitions. In this by-law, unless the context otherwise requires:
"Act" means the Canada Business Corporations Act, and any statute that may
be substituted therefor, as from time to time amended;
"appoint" includes "elect" and vice versa;
<PAGE>
"Articles" means the articles attached to the certificate of incorporation,
of the Corporation as from time to time amended or restated;
"Board" means the board of directors of the Corporation;
"By-laws" means this by-law and all other by-laws of the Corporation from
time to time in force and effect:
"meeting of shareholders" includes an annual meeting of shareholders and a
special meeting of shareholders;
"special meeting of shareholders" means a special meeting of all
shareholders entitled to vote at an annual meeting of shareholders;
"non-business day" means Saturday, Sunday and any other day that is a
holiday as defined in the Interpretation Act (Canada);
"recorded address" means in the case of a shareholder his address as
recorded in the shareholders register as maintained by the Corporation; and
in the case of joint shareholders the address appearing in the shareholders
register in respect of such joint holding or the first address so appearing
if there are more than one; and in the case of a director, officer, auditor
or member of a committee of the Board, his latest address as recorded in
the records of the Corporation;
"signing officer" means, in relation to any instrument, any person
authorized to sign the same on behalf of the Corporation as the Board may
by resolution determine from time to time; and
"unanimous shareholder agreement" means a written agreement among all the
shareholders of the Corporation, or among all such shareholders and a
person who is not a shareholder, that restricts, in whole or in part, the
powers of the directors to manage the business and affairs of the
Corporation, as from time to time amended.
1.02
Interpretation. Save as aforesaid, words and expressions defined in the Act
have the same meanings when used herein; and words importing the singular number
include the plural and vice versa; words importing gender include the masculine,
feminine and neuter genders; and words importing persons include individuals,
bodies corporate, partnerships, trusts and unincorporated organizations.
2
<PAGE>
Section Two
BUSINESS OF THE CORPORATION
2.01
REGISTERED OFFICE. The registered office of the Corporation shall be in the
place within Canada specified in its Articles. The Board may from time to time
change the address of the registered office within the place specified in the
Articles.
2.02
FINANCIAL YEAR. The financial year of the Corporation shall be determined from
time to time by resolution of the Board.
2.03
EXECUTION OF INSTRUMENTS. Deeds, transfers, assignments, contracts, obligations,
certificates and other instruments may be signed on behalf of the Corporation by
such signing officers as the Board may by resolution determine from time to
time. Any signing officer may affix the corporate seal to any instrument
requiring the same.
2.04
BANKING ARRANGEMENTS. The banking business of the Corporation including, without
limitation, the borrowing of money and the giving of security therefor, shall be
transacted with such banks, trust companies or other bodies corporate or
organizations as may from time to time be designated by or under the authority
of the Board. Such banking business or any part thereof shall be transacted
under such agreements, instructions and delegations of powers as the Board may
from time to time prescribe or authorize.
2.05
VOTING RIGHTS IN OTHER BODIES CORPORATE. The signing officers of the Corporation
may execute and deliver proxies and arrange for the issuance of voting
certificates or other evidence of the right to exercise the voting rights
attaching to any securities held by the Corporation. Such instruments,
certificates or other evidence shall be in favour of such person or persons as
may be determined by the officers executing such proxies or arranging for the
issuance of voting certificates or such other evidence of the right to exercise
such voting rights. In addition, the Board may from time to time direct the
manner in which and the person or persons by whom any particular voting rights
or class of voting rights may or shall be exercised.
2.06
WITHHOLDING INFORMATION FROM SHAREHOLDERS. Subject to the provisions of the Act,
no shareholder shall be entitled to discovery of any information respecting any
details or conduct of the Corporation's business which, in the opinion of the
Board, it would be inexpedient in the interests of the shareholders or the
Corporation to communicate to the public. The Board may from time to time
3
<PAGE>
determine whether and to what extent and at what time and place and under what
conditions or regulations the accounts, records and documents of the Corporation
or any of them shall be open to the inspection of shareholders and no
shareholder shall have any right of inspecting any account, record or document
of the Corporation except as conferred by the Act or authorized by the Board or
by resolution passed at a general meeting of shareholders.
Section Three
DIRECTORS
3.01
NUMBER OF DIRECTORS. Unless the number of directors on the Board is fixed in the
Articles, and until changed in accordance with the Act, the Board shall consist
of not fewer than the minimum number and not more than the maximum number of
directors provided in the Articles.
3.02
QUORUM. Subject to section 3.09, the quorum for the transaction of business at
any meeting of the Board shall consist of a majority of the number of directors
in office immediately following the last election or appointment of directors by
the shareholders.
3.03
QUALIFICATION. No person shall be qualified for election as a director if he
is less than eighteen (18) years of age; if he is of unsound mind and has been
so found by a court in Canada or elsewhere; if he is not an individual; or if he
has the status of a bankrupt. A director need not be a shareholder. A majority
of the directors shall be resident Canadians.
3.04
ELECTION AND TERM. The election of directors shall take place at the first
meeting of shareholders and at each annual meeting of shareholders and all the
directors then in office shall retire but, if qualified, shall be eligible for
reelection. The number of directors to be elected at any such meeting shall be
the number of directors then in office unless the directors or the shareholders
otherwise determine. The election shall be by resolution. If an election of
directors is not held at the proper time, the incumbent directors shall continue
in office until their successors are elected.
3.05
REMOVAL OF DIRECTORS. Subject to the provisions of the Act, the shareholders may
by resolution passed at a special meeting remove any director from office and
the vacancy created by such removal may be filled at the same meeting failing
which it may be filled by the directors.
4
<PAGE>
3.06
VACATION OF OFFICE. A director ceases to hold office when he dies; he is removed
from office by the shareholders; he ceases to be qualified for election as a
director; or his written resignation is sent or delivered to the Corporation, or
if a time is specified in such resignation, at the time so specified, whichever
is later.
3.07
VACANCIES. Subject to the Act, a quorum of the Board may fill a vacancy in the
Board, except a vacancy resulting from an increase in the minimum number of
directors or from a failure of the shareholders to elect the minimum number of
directors. In the absence of a quorum of the Board, or if the vacancy has arisen
from a failure of the shareholders to elect the minimum number of directors, the
Board shall forthwith call a special meeting of shareholders to fill the
vacancy. If the Board fails to call such meeting or if there are no such
directors then in office, any shareholder may call the meeting.
3.08
ACTION BY THE BOARD. Subject to any unanimous shareholder agreement, the Board
shall manage the business and affairs of the Corporation. Subject to sections
3.09 and 3. 10, the powers of the Board may be exercised by resolution passed at
a meeting at which a quorum is present or by resolution in writing signed by all
the directors entitled to vote on that resolution at a meeting of the Board.
Where there is a vacancy in the Board, the remaining directors may exercise all
the powers of the Board so long as a quorum remains in office. Where the
Corporation has only one director, that director may constitute the meeting.
3.09
CANADIAN MAJORITY. The Board shall not transact business at a meeting, other
than filling a vacancy in the Board, unless a majority of the directors present
are resident Canadians, except where:
(a) a resident Canadian director who is unable to be present approves in writing
or by telephone or other communications facilities the business transacted
at the meeting; and
(b) a majority of resident Canadians would have been present had that director
been present at the meeting.
3.10
MEETINGS BY TELEPHONE. If all the directors consent, a director may participate
in a meeting of the Board or of a committee of the Board by means of such
telephone or other communications facilities as permit all persons participating
in the meeting to hear each other, and a director participating in such a
meeting by such means is deemed to be present at the meeting. Any such consent
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shall be effective whether given before or after the meeting to which it relates
and may be given with respect to all meetings of the Board and of committees of
the Board held while a director holds office.
3.11
PLACE OF MEETINGS. Meetings of the Board may be held at any place in or outside
Canada.
3.12
CALLING OF MEETINGS. Meetings of the Board shall be held from time to time and
at such place as the Board, the chairman of the board, the managing director,
the president or any two directors may determine.
3.13
NOTICE OF MEETING. Notice of the time and place of each meeting of the Board
shall be given in the manner provided in section 1 1. 0 1 to each director not
less than forty-eight (48) hours before the time when the meeting is to be held.
A notice of a meeting of directors need not specify the purpose of or the
business to be transacted at the meeting except where the Act requires such
purpose or business to be specified, including any proposal to:
(a) submit to the shareholders any question or matter requiring approval of the
shareholders;
(b) fill a vacancy among the directors or in the office of auditor;
(c) issue securities, except in the manner and on the terms authorized by the
Board;
(d) declare dividends;
(e) purchase, redeem or otherwise acquire shares issued by Corporation;
(f) pay a commission for the sale of shares;
(g) approve a management proxy circular;
(h) approve a take-over bid circular or directors' circular;
(i) approve any annual financial statements; or
(j) adopt, amend or repeal by-laws.
A director may in any manner waive notice of or otherwise consent to a meeting
of the Board.
3.14
FIRST MEETING OF NEW BOARD. Provided a quorum of directors is present, each
newly elected Board may without notice hold its first meeting immediately
following the meeting of shareholders at which such Board is elected.
3.15
ADJOURNED MEETING. Notice of an adjourned meeting of the Board is not required
if the time and place of the adjourned meeting is announced at the original
meeting.
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3.16
REGULAR MEETINGS. The Board may appoint a day or days in any month or months for
regular meetings of the Board at a place and hour to be named. A copy of any
resolution of the Board fixing the place and time of such regular meetings shall
be sent to each director forthwith after being passed, but no other notice shall
be required for any such regular meeting except where the Act requires the
purpose thereof or the business to be transacted thereat to be specified.
3.17
CHAIRMAN. The chairman of any meeting of the Board shall be the first mentioned
of such of the following officers as have been appointed and who is a director
and is present at the meeting: chairman of the board, managing director,
president, or a vice-president. If no such officer is present, the directors
present shall choose one of their number to be chairman of the meeting.
3.18
VOTES TO GOVERN. At all meetings of the Board every question shall be decided by
a majority of the votes cast on the question. In case of an equality of votes
the chairman of the meeting shall be entitled to a second or casting vote.
3.19
CONFLICT OF INTEREST. A director or officer who is a party to, or who is a
director or officer of or has a material interest in any person who is a party
to, a material contract or proposed material contract with the Corporation shall
disclose the nature and extent of his interest at the time and in the manner
provided by the Act. Any such contract or proposed contract shall be referred to
the Board or shareholders for approval even if such contract is one that in the
ordinary course of the Corporation's business would not require approval by the
Board or shareholders, and a director interested in a contract so referred to
the Board shall not vote on any resolution to approve the same except as
provided by the Act.
3.20
REMUNERATION AND EXPENSES. Subject to any unanimous shareholder agreement, the
directors shall be paid such remuneration for their services as the Board may
from time to time determine. The directors shall also be entitled to be
reimbursed for travelling and other expenses properly incurred by them in
attending meetings of the Board or any committee thereof. Nothing herein
contained shall preclude any director from serving the Corporation in any other
capacity and receiving remuneration therefor.
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Section Four
COMMITTEES
4.01
COMMITTEE OF DIRECTORS. The Board may appoint a committee of directors, however
designated, and delegate to such committee any of the powers of the Board except
those which, under the Act, a committee of directors has no authority to
exercise. A majority of the members of such committee shall be resident
Canadians.
4.02
TRANSACTION OF BUSINESS. The powers of a committee of directors may be exercised
by a meeting at which a quorum is present or by resolution in writing signed by
all the members of such committee who would have been entitled to vote on that
resolution at a meeting of the committee or in the manner described in section
3.10. Meetings of such committee may be held at any place in or outside Canada.
4.03
ADVISORY COMMITTEES. The Board may from time to time appoint such other
committees as it may deem advisable, but the functions of any such other
committees shall be advisory only.
4.04
PROCEDURE. Unless otherwise determined by the Board, each committee shall have
the power to fix its quorum at not less than a majority of its members, to elect
its chairman and to regulate its procedure.
Section Five
OFFICERS
5.01
APPOINTMENT. Subject to any unanimous shareholder agreement, the Board may from
time to time appoint a chairman of the board, president, one or more
vice-presidents (to which title may be added words indicating seniority or
function), a secretary, a treasurer and such other officers as the Board may
determine, including one or more assistants to any of the officers so appointed.
The Board may specify the duties of and, in accordance with this by-law and
subject to the provisions of the Act, delegate to such officers powers to manage
the business and affairs of the Corporation. Subject to section 5.02 and 5.03,
an officer may but need not be a director and one person may hold more than one
office.
5.02
CHAIR OF THE BOARD. The Board may from time to time appoint a chairman of the
board who shall be a director. If appointed, the Board may assign to him any of
the powers and duties that are by any provisions of this by-law assigned to the
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president; and he shall, subject to the provisions of the Act, the Articles or
any unanimous shareholder agreement, have such other powers and duties as the
Board may specify. During the absence or disability of the chairman of the
board, his duties shall be performed and his powers exercised by the president.
5.03
MANAGING DIRECTOR. The Board may from time to time appoint a managing director
who shall be a resident Canadian and a director. If appointed, he may be the
chief executive officer and, subject to the authority of the Board, shall have
general supervision of the business and affairs of the Corporation; and he
shall, subject to the provisions of the Act or the Articles, have such other
powers and duties as the Board may specify. During the absence or disability of
the president, or if no president has been appointed, the managing director
shall also have the powers and duties of that office.
5.04
PRESIDENT. If appointed, the president shall be the chief operating officer and,
subject to the authority of the Board and of the managing director, if any,
shall have general supervision of the business of the Corporation; and he shall
have such other powers and duties as the Board may specify. During the absence
or disability of the chairman of the board, or if no chairman of the board has
been appointed, the president shall also have the powers and duties of that
office.
5.05
VICE-PRESIDENT. A vice-president shall have such powers and duties as the Board
or the president may specify.
5.06
SECRETARY. The secretary shall attend and be the secretary of all meetings of
the Board, shareholders and committees of the Board and shall enter or cause to
be entered in records kept for that purpose minutes of all proceedings thereat;
he shall give or cause to be given, as and when instructed, all notices to
shareholders, directors, officers, auditors and members of committees of the
Board; he shall be the custodian of the corporate seal of the Corporation and of
all books, papers, records, documents and instruments belonging to the
Corporation, except when some other officer or agent has been appointed for that
purpose; and he shall have such other powers and duties as the Board or the
president may specify.
5.07
TREASURER. The treasurer shall keep proper accounting records in compliance with
the Act and shall be responsible for the deposit of money, the safekeeping of
securities and the disbursement of funds of the Corporation; he shall render to
the Board whenever required an account of all his transactions as treasurer and
of the financial position of the Corporation; and he shall have such other
powers and duties as the Board or the president may specify.
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5.08
POWERS AND DUTIES OF OTHER OFFICERS. The powers and duties of all other officers
shall be such as the terms of their engagement call for or as the Board or the
president may specify. Any of the powers and duties of an officer to whom an
assistant has been appointed may be exercised and performed by such assistant
unless the Board or the president otherwise directs.
5.09
VARIATION OF POWERS AND DUTIES. The Board may from time to time and subject to
the provisions of the Act, vary, add to or limit the powers and duties of any
officer.
5.10
TERM OF OFFICE. The Board, in its discretion, may remove any officer of the
Corporation, without prejudice to such officer's rights under any employment
contract. Otherwise each officer appointed by the Board shall hold office until
his successor is appointed or his written resignation is sent or delivered to
the Corporation, or if a time is specified in such resignation, at the time so
specified, whichever is later.
5.11
TERMS OF EMPLOYMENT AND REMUNERATION. The terms of employment and the
remuneration of officers appointed by the Board shall be settled by it from time
to time.
5.12
CONFLICT OF INTEREST. An officer shall disclose his interest in any material
contract or proposed material contract with the Corporation in accordance with
section 3.19.
5.13
AGENTS AND ATTORNEYS. The Board shall have power from time to time to appoint
agents or attorneys for the Corporation in or outside Canada with such powers of
management or otherwise (including the power to sub-delegate) as may be thought
fit.
5.14
FIDELITY BONDS. The Board may require such officers, employees and agents of the
Corporation as the Board deems advisable to furnish bonds for the faithful
discharge of their powers and duties, in such form and with such surety as the
Board may from time to time determine.
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Section Six
PROTECTION OF DIRECTORS, OFFICERS AND OTHERS
6.01
LIMITATION OF LIABILITY. No director or officer shall be liable for the acts,
receipts, neglects or defaults of any other director or officer or employee, or
for joining in any receipt or other act for conformity, or for any loss, damage
or expense happening to the Corporation through the insufficiency or deficiency
of title to any property acquired for or on behalf of the Corporation, or for
the insufficiency or deficiency of any security in or upon which any of the
moneys of the Corporation shall be invested, or for any loss or damage arising
from the bankruptcy, insolvency or tortious acts of any person with whom any of
the moneys, securities or effects of the Corporation shall be deposited, or for
any loss occasioned by any error of judgment or oversight on his part, or for
any other loss, damage or misfortune whatever which shall happen in the
execution of the duties of his office or in relation thereto, unless the same
are occasioned by his own wilful neglect or default; provided that nothing
herein shall relieve any director or officer from the duty to act in accordance
with the Act and the regulations thereunder or from liability for any breach
thereof.
6.02
INDEMNITY. Subject to the limitations contained in the Act, the Corporation
shall indemnify a director or officer, a former director or officer, or a person
who acts or acted at the Corporation's request as a director or officer of a
body corporate of which the Corporation is or was a shareholder or creditor (or
a person who undertakes or has undertaken any liability on behalf of the
Corporation or any such body corporate) and his heirs and legal representatives,
against all costs, charges and expenses, including an amount paid to settle an
action or satisfy a judgment, reasonably incurred by him in respect of any
civil, criminal or administrative action or proceeding to which he is made a
party by reason of being or having been a director or officer of the Corporation
or such body corporate, if:
(a) he acted honestly and in good faith with a view to the best interests of the
Corporation; and
(b) in the case of a criminal or administrative action or proceeding that is
enforced by a monetary penalty, he had reasonable grounds for believing that
his conduct was lawful.
6.03
INSURANCE. Subject to the limitations contained in the Act, the Corporation may
purchase and maintain such insurance for the benefit of its directors and
officers as such, as the Board may from time to time determine.
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Section Seven
SHARES
7.01
ALLOTMENT. The Board may from time to time allot or grant options to purchase
the whole or any part of the authorized and unissued shares of the Corporation
at such times and to such persons and for such consideration as the Board shall
determine, provided that no share shall be issued until it is fully paid as
prescribed by the Act.
7.02
COMMISSIONS. The Board may from time to time authorize the Corporation to pay a
commission to any person in consideration of his purchasing or agreeing to
purchase shares of the Corporation, whether from the Corporation or from any
other person, or procuring or agreeing to procure purchasers for any such
shares.
7.03
REGISTRATION OF TRANSFER. Subject to the provisions of the Act, no transfer of
shares shall be registered in a shareholders register except upon presentation
of the certificate representing such shares with a transfer endorsed thereon or
delivered therewith duly executed by the registered holder or by his attorney or
successor duly appointed, together with such reasonable assurance or evidence of
signature, identification and authority to transfer as the Board may from time
to time prescribe, upon payment of all applicable taxes and any fees prescribed
by the Board, upon compliance with such restrictions on transfer as are
authorized by the Articles and upon satisfaction of any lien referred to in
section 7.05.
7.04
TRANSFER AGENTS AND REGISTRARS. The Board may from time to time appoint a
registrar to maintain the shareholders register and a transfer agent to maintain
the register of transfers and may also appoint one or more branch registrars to
maintain branch shareholders registers and one or more branch transfer agents to
maintain branch registers of transfers, but one person may be appointed both
registrar and transfer agent. The Board may at any time terminate any such
appointment.
7.05
LIEN FOR INDEBTEDNESS. If the Articles provide that the Corporation shall have a
lien on shares registered in the name of a shareholder indebted to the
Corporation, the Corporation may sell, in such manner as the Board thinks fit,
any shares on which the Corporation has such a lien, but no sale shall be made
unless some sum in respect of which the lien exists is presently payable, nor
until the expiration of fourteen (14) days after a notice in writing, stating
and demanding payment of such part of the amount in respect of which the lien
exists as is presently payable, has been given to the registered holder of the
share or the person entitled by reason of his death or bankruptcy.
Upon any sale made by the Corporation of any shares to satisfy its lien
thereon, the proceeds shall be applied as follows: first, in payment of all
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costs of such share; second, in satisfaction of the debts or obligations of the
shareholder (whether or not due), and the residue (if any) shall be paid to the
shareholder or as he shall direct.
Upon any such sale, the Board may enter the purchaser's name in the
register as the holder of the shares, and the purchaser is not bound to see to
the regularity or validity of the proceedings or to the application of the
purchase money; and he is not affected by any irregularity or invalidity in the
proceedings. After his name has been entered in the register, the validity of
the sale is not to be impeached by any person, and the remedy of any person
aggrieved by the same shall be in damages only and against the Corporation
exclusively.
7.06
NON-RECOGNITION OF TRUSTS. Subject to the provisions of the Act, the Corporation
shall treat as absolute owner of any share the person in whose name the share is
registered in the shareholders register as if that person had full legal
capacity and authority to exercise all rights of ownership, irrespective of any
indication to the contrary through knowledge or notice or description in the
Corporation's records or on the share certificate.
7.07
SHARE CERTIFICATE. Every holder of one or more shares of the Corporation shall
be entitled, at his option, to a share certificate, or to a nontransferable
written acknowledgment of his right to obtain a share certificate, stating the
number and class or series of shares held by him as shown on the shareholders
register. Share certificates and acknowledgments of a shareholder's right to a
share certificate, respectively, shall be in such form as the Board shall from
time to time approve. Any share certificate shall be signed by any two (2)
officers or directors and need not be under the corporate seal; provided that,
unless the Board otherwise determines, certificates representing shares in
respect of which a transfer agent and/or registrar has been appointed shall not
be valid unless countersigned by or on behalf of such transfer agent and/or
registrar. A share certificate shall be signed manually by at least one director
or officer of the Corporation or by or on behalf of the transfer agent and/or
registrar. Any additional signatures required may be printed or otherwise
mechanically reproduced. A share certificate executed as aforesaid shall be
valid notwithstanding that one or both of the officers whose facsimile signature
appears thereon no longer holds office at the date of issue of the certificate.
7.08
REPLACEMENT OF SHARE CERTIFICATES. The Board or any officer or agent designated
by the Board may in its or his discretion direct the issue of a new share
certificate in lieu of and upon cancellation of a share certificate that has
been mutilated or in substitution for a share certificate claimed to have been
lost, destroyed or wrongfully taken on such terms as to indemnity, reimbursement
of expenses and evidence of loss and of title as the Board may from time to time
prescribe, whether generally or in any particular case.
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7.09
JOINT SHAREHOLDERS. If two (2) or more persons are registered as joint
holders of any share, the Corporation shall not be bound to issue more than one
certificate in respect thereof, and delivery of such certificate to one of such
persons shall be sufficient delivery to all of them. Any one of such persons may
give effectual receipts for the certificate issued in respect thereof or for any
dividend, bonus, return of capital or other money payable or warrant issuable in
respect of such share.
7.10
DECEASED SHAREHOLDERS. In the event of the death of a holder, or of one of
the joint holders, of any share, the Corporation shall not be required to make
any entry in the shareholders register in respect thereof or to make payment of
any dividends thereon except upon production of all such documents as may be
required by law and upon compliance with the reasonable requirements of the
Corporation and its transfer agents.
Section Eight
DIVIDENDS AND RIGHTS
8.01
DIVIDENDS. Subject to the provisions of the Act, the Board may from time to
time declare dividends payable to the shareholders according to their respective
rights and interests in the Corporation. Dividends may be paid in money or
property or by issuing fully paid shares of the Corporation.
8.02
DIVIDEND CHEQUES. A dividend payable in cash shall be paid by cheque drawn on
the Corporation's bankers or one of them to the order of each registered holder
of shares of the class or series in respect of which it has been declared and
mailed by prepaid ordinary mail to such registered holder at his recorded
address, unless such holder otherwise directs. In the case of joint holders the
cheque shall, unless such joint holders otherwise direct, be made payable to the
order of all of such joint holders and mailed to them at their recorded address.
The mailing of such cheque as aforesaid, unless the same is not paid on due
presentation, shall satisfy and discharge the liability for the dividend to the
extent of the sum represented thereby plus the amount of any tax which the
Corporation is required to and does withhold.
8.03
NON-RECEIPT OF CHEQUES. In the event of non-receipt of any dividend cheque by
the person to whom it is sent as aforesaid, the Corporation shall issue to such
person a replacement cheque for a like amount on such terms as to indemnity,
reimbursement of expenses and evidence of non-receipt and of title as the Board
may from time to time prescribe, whether generally or in any particular case.
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8.04
RECORD DATE FOR DIVIDENDS AND RIGHTS. The Board may fix in advance a date,
preceding by not more than fifty (50) days and not less than twenty-one (21)
days the date for the payment of any dividend or the date for the issue of any
warrant or other evidence of right to subscribe for securities of the
Corporation, as a record date for the determination of the persons entitled to
receive payment of such dividend or to exercise the right to subscribe for such
securities, provided that notice of any such record date is given, not less than
seven (7) days before such record date, by newspaper advertisement in the manner
provided in the Act. Where no record date is fixed in advance as aforesaid, the
record date for the determination of the persons entitled to receive payment of
any dividend or to exercise the right to subscribe for securities of the
Corporation shall be at the close of business on the day on which the resolution
relating to such dividend or right to subscribe is passed by the Board.
8.05
UNCLAIMED DIVIDENDS. Any dividend unclaimed after a period of six (6) years from
the date on which the same has been declared to be payable shall be forfeited
and shall revert to the Corporation.
Section Nine
MEETINGS OF SHAREHOLDERS
9.01
ANNUAL MEETINGS. The annual meetings of shareholders shall be held at such time
in each year and, subject to section 9.03, at such place as the Board, the
chairman of the board, the managing director or the president may from time to
time determine, for the purpose of considering the financial statements and
reports required by the Act to be placed before the annual meeting, electing
directors, appointing auditors and for the transaction of such other business as
may properly be brought before the meeting.
9.02
SPECIAL MEETINGS. The Board, the chairman of the board, the managing director or
the president shall have power to call a special meeting of shareholders at any
time.
9.03
PLACE OF MEETINGS. Meetings of shareholders shall be held at the registered
office of the Corporation or elsewhere in the municipality in which the
registered office is situate or, if the Board shall so determine, at some other
place in Canada or, if all the shareholders entitled to vote at the meeting so
agree, at some place outside Canada.
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9.04
NOTICE OF MEETINGS. Notice of the time and place of each meeting of shareholders
shall be given in the manner provided in section 1 1. 0 1 not less than
twenty-one (21) nor more than fifty (50) days before the date of the meeting to
each director, to the auditor and to each shareholder who at the close of
business on the record date, if any, for notice is entered in the shareholders
register as the holder of one or more shares carrying the right to vote at the
meeting. Notice of a meeting of shareholders called for any purpose other than
consideration of the financial statements and auditor's report, election of
directors and reappointment of the incumbent auditor shall state the nature of
such business in sufficient detail to permit the shareholder to form a reasoned
judgment thereon and shall state the text of any special resolution to be
submitted to the meeting. A shareholder and any other person entitled to attend
a meeting of shareholders may in any manner waive notice of or otherwise consent
to a meeting of shareholders.
9.05
LIST OF SHAREHOLDERS ENTITLED TO NOTICE. For every meeting of shareholders, the
Corporation shall prepare a list of shareholders entitled to receive notice of
the meeting, arranged in alphabetical order and showing the number of shares
entitled to vote at the meeting held by each shareholder. If a record date for
the meeting is fixed pursuant to section 9.06, the shareholders listed shall be
those registered at the close of business on a day not later than ten (10) days
after such record date. If no record date is fixed, the shareholders listed
shall be those registered at the close of business on the day immediately
preceding the day on which notice of the meeting is given, or where no such
notice is given, the day on which the meeting is held. The list shall be
available for examination by any shareholder during usual business hours at the
registered office of the Corporation or at the place where the shareholders
register is kept and at the place where the meeting is held.
9.06
RECORD DATE FOR NOTICE. The Board may fix in advance a record date, preceding
the date of any meeting of shareholders by not more than fifty (50) days and not
less than twenty-one (21) days, for the determination of the shareholders
entitled to notice of the meeting, provided that notice of any such record date
is given, not less than seven (7) days before such record date, by newspaper
advertisement in the manner provided in the Act. If no record date is so fixed,
the record date for the determination of the shareholders entitled to notice of
the meeting shall be the close of business on the day immediately preceding the
day on which the notice is given.
9.07
MEETINGS WITHOUT NOTICE. A meeting of shareholders may be held without notice at
any time and place permitted by the Act:
(a) if all the shareholders entitled to vote thereat are present in person or
represented by proxy or if those not present or represented by proxy waive
notice of or otherwise consent to such meeting being held; and
(b) if the auditors and the directors are present or waive notice of or
otherwise consent to such meeting being held.
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At such a meeting any business may be transacted which the Corporation at a
meeting of shareholders may transact. If the meeting is held at a place outside
Canada, shareholders not present or represented by proxy, but who have waived
notice of or otherwise consented to such meeting, shall also be deemed to have
consented to the meeting being held at such place.
9.08
CHAIRMAN, SECRETARY AND SCRUTINEERS. The chairman of any meeting of shareholders
shall be the first mentioned of such of the following officers as have been
appointed and who is present at the meeting: chairman of the board, managing
director, president, or a vice-president who is a shareholder. If no such
officer is present within fifteen (15) minutes from the time fixed for holding
the meeting, the persons present and entitled to vote shall choose one of their
number to be chairman of the meeting. If the secretary of the Corporation is
absent, the chairman of the meeting shall appoint some person, who need not be a
shareholder, to act as secretary of the meeting. If desired, one or more
scrutineers, who need not be shareholders, may be appointed by a resolution or
by the chairman of the meeting with the consent of the meeting.
9.09
PERSONS ENTITLED TO BE PRESENT. The only persons entitled to be present at a
meeting of the shareholders shall be those entitled to vote thereat, the
directors and auditors of the Corporation and others who, although not entitled
to vote, are entitled or required under any provision of the Act or the Articles
or bylaws to be present at the meeting. Any other person may be admitted only on
the invitation of the chairman of the meeting or with the consent of the
meeting.
9.10
QUORUM. A quorum for the transaction of business at any meeting of shareholders
shall be the holders of a majority of the shares entitled to vote at a meeting
of shareholders, whether present or represented by proxy.
9.11
ONLY ONE SHAREHOLDER. Where the Corporation has only one shareholder or only one
holder of any class or series of shares, the shareholder present in person or by
proxy constitutes a meeting.
9.12
RIGHT TO VOTE. Subject to the provisions of the Act as to authorized
representatives of any other body corporate, at any meeting of shareholders in
respect of which the Corporation has prepared the list referred to in section
9.05, every person who is named in such list shall be entitled to vote the
shares shown thereon opposite his name except, where the Corporation has fixed a
record date in respect of such meeting pursuant to section 9.06, to the extent
that such person has transferred any of his shares after such record date and
the transferee, upon producing properly endorsed certificates evidencing such
shares or otherwise establishing that he owns such shares, demands not later
than ten (10) days before the meeting that his name be included to vote the
transferred shares at the meeting. In the absence of a list prepared as
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aforesaid in respect of a meeting of shareholders, every person shall be
entitled to vote at the meeting who at the time is entered in the shareholders
register as the holder of one or more shares carrying the right to vote at such
meeting.
9.13
PROXIES. Every shareholder entitled to vote at a meeting of shareholders may
appoint a proxyholder, or one or more alternate proxyholders, who need not be
shareholders, to attend and act at the meeting in the manner and to the extent
authorized and with the authority conferred by the proxy. A proxy shall be in
writing executed by the shareholder or his attorney and shall conform with the
requirements of the Act.
9.14
TIME FOR DEPOSIT OF PROXIES. The Board may specify in a notice calling a meeting
of shareholders a time, preceding the time of such meeting by not more than
forty-eight (48) hours exclusive of non-business days, before which time proxies
to be used at such meeting must be deposited. A proxy shall be acted upon only
if, prior to the time so specified, it shall have been deposited with the
Corporation or an agent thereof specified in such notice or, if no such time is
specified in such notice, unless it has been received by the secretary of the
Corporation or by the chairman of the meeting or any adjournment thereof prior
to the time of voting.
9.15
JOINT SHAREHOLDERS. If two (2) or more persons hold shares jointly, any one of
them present in person or represented by proxy at a meeting of shareholders may,
in the absence of the other or others, vote the shares; but if two (2) or more
of those persons are present in person or represented by proxy and vote, they
shall vote as one on the shares jointly held by them.
9.16
VOTES TO GOVERN. At any meeting of shareholders every question shall, unless
otherwise required by the Articles or by-laws or by law, be determined by the
majority of the votes cast on the question. In case of an equality of votes
either upon a show of hands or upon a poll, the chairman of the meeting shall be
entitled to a second or casting vote.
9.17
SHOW OF HANDS. Subject to the provisions of the Act, any question at a meeting
of shareholders shall be decided by a show of hands unless a ballot thereon is
required or demanded as hereinafter provided. Upon a show of hands every person
who is present and entitled to vote shall have one vote. Whenever a vote by show
of hands shall have been taken upon a question, unless a ballot thereon is so
required or demanded, a declaration by the chairman of the meeting that the vote
upon the question has been carried or carried by a particular majority or not
carried and an entry to that effect in the minutes of the meeting shall be
priina facie evidence of the fact without proof of the number or proportion of
the votes recorded in favour of or against any resolution or other proceeding in
respect of the said question, and the result of the vote so taken shall be the
decision of the shareholders upon the said question.
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9.18
BALLOTS. On any question proposed for consideration at a meeting of
shareholders, and whether or not a show of hands has been taken thereon, any
shareholder or proxyholder entitled to vote at the meeting may require or demand
a ballot. A ballot so required or demanded shall be taken in such manner as the
chairman of the meeting shall direct. A requirement or demand for a ballot may
be withdrawn at any time prior to the taking of the ballot. If a ballot is taken
each person present shall be entitled, in respect of the shares which he is
entitled to vote at the meeting upon the question, to that number of votes
provided by the Act or the Articles, and the result of the ballot so taken shall
be the decision of the shareholders upon the said question.
9.19
ADJOURNMENTS. If a meeting of shareholders is adjourned for less than thirty
(30) days, it shall not be necessary to give notice of the adjourned meeting,
other than by announcement at the earliest meeting that is adjourned. If a
meeting of shareholders is adjourned by one or more adjournments for an
aggregate of thirty (30) days or more, notice of the adjourned meeting shall be
given as for an original meeting.
9.20
RESOLUTION IN WRITING. A resolution in writing signed by all of the shareholders
entitled to vote on that resolution at a meeting of shareholders is as valid as
if it had been passed at a meeting of the shareholders unless a written
statement with respect to the subject matter of the resolution is submitted by a
director or the auditors in accordance with the Act.
Section Ten
DIVISIONS AND DEPARTMENTS
10.01
CREATION AND CONSOLIDATION OF DIVISIONS. The Board may cause the business and
operations of the Corporation or any part thereof to be divided or to be
segregated into one or more divisions upon such basis, including without
limitation, character or type of operation, geographical territory, product
manufactured or service rendered, as the Board may consider appropriate in each
case. The Board may also cause the business and operations of any such division
to be further divided into sub-units and the business and operations of any such
divisions or sub-units to be consolidated upon such basis as the Board may
consider appropriate in each case.
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10.02
NAME OF DIVISION. Any division or its sub-units may be designated by such name
as the Board may from time to time determine and may transact business, enter
into contracts, sign cheques and other documents of any kind and do all acts and
things under such name. Any such contract, cheque or document shall be binding
upon the Corporation as if it had been entered into or signed in the name of the
Corporation.
10.03
OFFICERS OF DIVISIONS - From time to time the Board, or if authorized by the
Board, the president, may appoint one or more officers for any division,
prescribe their powers and duties and settle their terms of employment and
remuneration. The Board or, if authorized by the Board, the president, may
remove at its or his pleasure any officer so appointed, without prejudice to
such officer's rights under any employment contract. Officers of divisions or
their sub-units shall not, as such, be officers of the Corporation.
Section Eleven
NOTICES
11.01
METHOD OF GIVING NOTICE. Any notice (which term includes any communication or
document) to be given (which term includes received, delivered or served)
pursuant to the Act, the regulations thereunder, the Articles, the by-laws or
otherwise to a shareholder, director, officer, auditor or member of a committee
of the Board shall be sufficiently given if served personally or if delivered to
his recorded address or if mailed to him at his recorded address by prepaid
ordinary or air mail or if sent to him at his recorded address by any means of
prepaid transmitted or recorded communication. A notice served personally or
delivered at the recorded address shall be deemed to have been given when it is
served personally or delivered to the recorded address as aforesaid; a notice
mailed as aforesaid shall be deemed to have been given on the fifth day after
having been deposited in a post office or public letter box; and a notice so
sent by any means of transmitted or recorded communication shall be deemed to
have been given when dispatched or if delivered to an appropriate communication
company or agency or its representative for dispatch, one day after such
delivery. The secretary may change or cause to be changed the recorded address
of any shareholder, director, officer, auditor or member of a committee of the
Board in accordance with any information believed by him to be reliable or in
the most recent notice filed pursuant to the Act, whichever is the more current.
11.02
NOTICE TO JOINT SHAREHOLDERS. If two (2) or more persons are registered as joint
holders of any share, any notice shall be addressed to all of such joint holders
but notice to one of such persons shall be sufficient notice to all of them.
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11.03
COMPUTATION OF TIME. In computing the date when notice must be given under any
provision requiring a specified number of days' notice of any meeting or other
event, the date of giving the notice shall be excluded and the date of the
meeting or other event shall be included.
11.04
UNDELIVERED NOTICES. If any notice given to a shareholder pursuant to section
11.01 is returned on three consecutive occasions because he cannot be found, the
Corporation shall not be required to give any further notices to such
shareholder until he informs the Corporation in writing of his new address.
11.05
OMISSIONS AND ERRORS. The accidental omission to give any notice to any
shareholder, director, officer, auditor or member of a committee of the Board or
the non-receipt of any notice by any such person or any error in any notice not
affecting the substance thereof shall not invalidate any action taken at any
meeting held pursuant to such notice or otherwise founded thereon.
11.06
PERSONS ENTITLED BY DEATH OR OPERATION OF LAW. Every person who, by operation of
law, transfer, death of a shareholder or any other means whatsoever, shall
become entitled to any share, shall be bound by every notice in respect of such
share which shall have been duly given to the shareholder from whom he derives
his title to such share prior to his name and address being entered on the
shareholders register (whether such notice was given before or after the
happening of the event upon which he became so entitled) and prior to his
furnishing to the Corporation the proof of authority or evidence of his
entitlement prescribed by the Act.
11.07
WAIVER OF NOTICE. Any shareholder (or his duly appointed proxyholder), director,
officer, auditor or member of a committee of the Board may at any time waive any
notice, or waive or abridge the time for any notice, required to be given to him
under any provisions of the Act, the regulations thereunder, the Articles, the
by-laws or otherwise and such waiver or abridgement shall cure any default in
the giving or in the time of such notice, as the case may be. Any such waiver or
abridgement shall be in writing except a waiver of notice of a meeting of
shareholders or of the Board which may be given in any manner.
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Section Twelve
EFFECTIVE DATE
12.01
EFFECTIVE DATE. This by-law shall come into force when confirmed by the
shareholders in accordance with the Act.
PASSED this 24th day of May, 1996.
President Secretary
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BY-LAW NO. 2
OF
E-CRUITER.COM INC.
being a by-law to amend By-law No. 1
BE IT ENACTED as By-law No. 2 of the Corporation that paragraph 9.10 of
By-law No. 1 of the Corporation is hereby deleted and the following paragraph
shall be inserted:
"9.10 QUORUM A quorum for the transaction of business at any meeting of
shareholders shall be the holders of at least one-third of the shares
entitled to vote at a meeting of shareholders, whether present or
represented by proxy."
DATED this 1st day of October, 1999.
_______________________
President Secretary
